Seongdong-gu Provides 4.6 Billion KRW Loan Support for SME Development Fund in Second Half of the Year

Applications accepted until the 29th... First-time 1-year interest support and no guarantee fees for small business owners, loans up to 200 million KRW for SMEs

[Asia Economy Reporter Jongil Park] Seongdong-gu (Mayor Jeong Won-oh) will provide an additional 4.6 billion KRW in loan support in the second half of the year to stabilize the management and minimize damage for small business owners, including small and medium-sized enterprises (SMEs) and self-employed individuals who have suffered economic damage due to the prolonged COVID-19 pandemic.

While the support in the first half of the year was limited to companies and small business owners, this time it has been expanded to include SMEs, including corporations.

From February to August this year, the district provided loans totaling 3.85 billion KRW to 105 companies through the SME Development Fund, supporting interest payments with district funds. For 13 companies that received bank cooperative funds, interest on loans amounting to 260 million KRW is also being supported.

The second half loan support is divided into two categories based on the application amount. First, support within a loan limit of up to 20 million KRW is targeted at small business owners and self-employed individuals with more than one year of business experience, and only individual business owners can apply.

The interest rate is 1.7%, and the district supports interest and guarantee fees for one year. In August, the special credit guarantee by the Seoul Credit Guarantee Foundation, funded by a 400 million KRW contribution from Seongdong-gu, is being reviewed under relaxed conditions, with a 100% guarantee ratio.

For corporations and SMEs, loans can be applied for up to 200 million KRW within one-quarter of last year's sales. The interest rate is 1.7%, with a one-year grace period and three years of equal repayment. For companies that find it difficult to provide collateral such as real estate, collateral can be provided through a guarantee from the Seoul Credit Guarantee Foundation.

Exclusion criteria for applications include ▲companies that have received SME Development Fund loans from Seongdong-gu within the last three years ▲companies that used guarantees from the Seoul Credit Guarantee Foundation related to COVID-19 in 2020 ▲those with bad credit, overdue payments, or unpaid national and local taxes ▲businesses that are temporarily closed or closed, and industries prohibited or restricted from guarantees. However, companies that have received district fund support within the last three years but whose repayment expires between September this year and February next year are eligible to apply.

Applications for the second half loan support are being accepted from the 14th to the 29th. Companies wishing to apply should refer to the announcements section on the Seongdong-gu Office website, visit the designated loan bank for prior consultation with the person in charge, and then visit the 13th floor Regional Economy Division of Seongdong-gu Office to submit their application.

After review by the SME Development Fund Operation Committee, eligible companies will be selected, and loan execution and fund disbursement are expected to take place from mid-October.

Jeong Won-oh, Mayor of Seongdong-gu, said, “Through the second half loan support, we hope to provide practical assistance such as financing and easing interest burdens to SMEs and small business owners struggling with the ongoing economic downturn and business operations, contributing to the stabilization of their management.”

This content was produced with the assistance of AI translation services.